What can you buy with cryptocurrencies in 2021?

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Bitcoin was initially created with the purpose of being a purely peer-to-peer version of electronic cash that would allow online payments, nevertheless, cryptocurrencies payments are still in a development stage.

In the last few years more and more technological solutions that simplify the life of vendors that want to accept crypto payments were introduced.

As a result, more vendors are accepting crypto as a payment method and crypto ATM networks are increasing every year. Mass adoption of crypto is getting closer, but, at this stage, the question still poses: what can you buy with cryptocurrencies in 2021?

🏠 Can I buy a house with crypto? 

🍔 Can I spend crypto on food?

🚘 Can I buy a car with Bitcoin?

🚀 Can I use crypto to travel?

💻 ⚽ Other stuff you can spend your crypto on

  • Microsoft lets you use BTC to shop at their Windows and Xbox stores. 

  • You can use 50+ different coins to make Twitch donations. 

  • Both Etsy and Shopify allow any seller or store on their platforms to be paid in cryptocurrencies.

  • Football (soccer) club Benfica accepts Bitcoin to pay for tickets. Or use crypto to buy NBA tickets from the Sacramento Kings or the Dallas Mavericks

🎗️ Charities that accept crypto donations

  • If you’re looking for a worthy cause to donate your crypto, Wikipedia, Save the Children or The Water Project accept crypto as a donation. 

  • The Giving Block has a nice tool to filter through the countless nonprofits accepting cryptocurrencies.

  • You can also donate crypto with GiveCrypto, a nonprofit that distributes cryptocurrency to people living in poverty.

🧾 Can I pay my taxes with crypto? 

But don't forget, if you buy something with crypto, it is probably a good idea to buy back part of the crypto you spent, so that you don't end up like the Bitcoin Pizza Guy.

What’s the tax impact of paying with cryptocurrencies?

As an example, in the US paying with cryptocurrencies is considered a taxable event which means that a payment will give rise to capital gain or loss. 

In fact, according to the IRS, “if you pay for a service using virtual currency that you hold as a capital asset, then you have exchanged a capital asset for that service and will have a capital gain or loss”.

In this context, you should be aware of this fact so that you don’t inadvertently increase your tax burden while doing payments with cryptocurrencies. You could also combine a tax loss harvesting strategy with payments made with crypto, to make it more efficient from a tax perspective.

In regards to donations to charities, donating your crypto is tax free and deductible as long as you are donating to an IRS-recognized tax-exempt charity. The amount of your donation that is tax deductible (between 30% and 50%) depends on how long you have held the assets.

This post is brought to you by CoinTaxList, which focuses on crypto tax research and knowledge.

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Disclaimer: The information provided in this blog post is for general information purposes only. The information was completed to the best of our knowledge and does not claim either correctness or accuracy. For detailed information on crypto taxes, we recommend contacting a specialist in the specific country.

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